Buying Vs Renting Solar Panels

This option could allow homeowners to immediately enjoy the benefits of solar without having to incur large upfront costs.

Buying vs renting solar panels.

The main practical distinction between buying and leasing a solar pv system is in ownership. Whether you lease or buy solar panels you will save money on your energy bill. As the cost of solar technology drops more and more homeowners are considering buying or leasing rooftop solar panels. We will discuss the pros and cons in this article but first we must address one fact.

There are other reasons why buying rather than renting makes good financial sense. Tax credits and incentives. The only way to receive a 30 federal tax credit on the cost of your solar energy system is if you buy your panels. If that sounds like you leasing solar panels or purchasing power through a ppa power purchase agreement could be a good option.

With both leasing and ppas you don t pay any upfront costs for your panels and you can typically save on your utility rate. Both a solar lease and ppa are affordable easy ways to enjoy solar power without a large upfront investment. Renting gives homeowners added flexibility over buying solar panels in that they can remove the panels whenever they d like. Difference between leasing vs buying solar panels first understand the difference between buying and leasing.

Buying involves purchasing the solar panels for domestic or commercial use using the buyers own or borrowed funds. One of the biggest disadvantages of solar leases is that you don t get to take advantage of. And while buying is still the better long term investment leasing solar panels is a good alternative to buying for many people and in many circumstances. According to consumer reports savings will be modest if you rent panels because in many cases leases contain an escalator clause which requires you to pay more on the lease each year.

However when you buy. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. People who lease their solar systems save far less than those who buy them outright or with a loan they also miss out on federal tax benefits and any local incentives. Here s why you might want to lease solar panels instead of buying or financing them.

If you don t buy the company you lease from remains the owner of the solar panel system and therefore receives the long term financial benefits. In fact the u s. Buying solar panels long term savings. Leasing solar panels from a solar provider merely give you benefits as a renter of the energy system.

If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system.